How to claim deduction under section 80U of the Income Tax Act. Section 80U deals with the deduction available to disable person. Person can claim deduction from taxable income based on his physical disability and amount of deduction is dependent on percentage of disability like 40% disable or more than 40% disable or severe disable. Download Format of Doctor Certificate to Claim Income Tax Deduction
Eligible assessee for claiming deduction : Only Resident Individual can claim deduction under section 80U for disability.
Maximum Deduction u/s 80U: Maximuum Deduction of Rs.50,000/-. and if the assessee suffers from severe disability, the deduction limit will be Rs. 1,00,000/-. ‘Severe disability’ means disability of 80% or more.
Conditions for Claiming Deduction under Section 80U of Income Tax Act
- The assessee should suffer from ‘disability’, autism, palsy or multiple disabilities at any time. During the term ‘disability’ shall have the same meaning as in section 2 of the persons with disabilities (Equal opportunities, protection of right and full participation) Act, 1995.
- Further, a certificate of the prescribed medical authority must be filed with the return of income. If the condition of disability requires reassessment of its extent after a period stipulated in the certificate, no deduction shall be allowed for any assessment year relevant to the previous year during which the aforesaid certificate had expired, unless a new certificate is obtained from the medical authority and submitted with the return of income.
Read what are the other Income Tax Deduction which Tax Payer can Claim as deduction from Taxable Income
DISABILITY GUIDELINES FOR INCOME TAX DEDUCTION
As per Section 2(t) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 “person with disability” means a person suffering from not less than forty per cent of any disability as certified by a medical authority. As per Section 2 (p), “medical authority” means any hospital or institution specified for the purposes of this Act by notification by the appropriate Government. In pursuance of this, State Governments/UT administrations are required to notify the medical authorities to issue disability certificate.
Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Rules, 1996 required that a disability certificate shall be issued by a medical board duly constituted by the Central/State Government. This required a lot of time and travel by persons with disabilities to the district headquarters. Often full medical boards are not able to meet on a given day causing yet more delay and inconvenience. Therefore Ministry of Social Justice and Empowerment has amended the Persons with Disabilities Rules, 1996 in December 2009 with a view to simplify the process of issuing disability certificates. A doctor can now assess and issue the certificate even at PHC in case of visible disabilities such as amputations, complete paralysis, and blindness. A specialist doctor can do so in other cases. For multiple disabilities however more than one specialist will be necessary.
Ministry of Social Justice and Empowerment has issued guidelines for evaluation of locomotor, visual, hearing, mental retardation and multiple disabilities vide Notification No. 16-18/97-NI I dated 01.06.2001 and mental illness vide Notification No. 16-18/97-NI I dated 18.02.2002.